Wise Words

Property Sale Overseas: Slovak Republic Property Buyers Guide

Almost anyone can purchase a property
in Slovakia and the process is generally very straightforward. Why
not let The Property Bank guide you through every step. In the
following pages is general information and answers to the most
frequently asked questions. Please take time to read through this
information and if you have any questions do not hesitate to give us
a call

Purchase & Living cost
Typical Payment Terms - New Build Property
30% Deposit when reserving your property/signing of contract
30% Upon completion of the building shell
40% Upon completion
Or
20-30% Deposit when reserving your property/signing of contract
80-70% Upon completion

Typical Payment Terms - Resale Property
Typically a 10% deposit with balance upon completion of sale,
although it may be possible to arrange different payment terms if
desired. Alternatively, the entire amount can be transferred to a
public notary who will pay the vendor upon receipt of the letter of
ownership for the property in the name of the purchaser.

Purchase Tax
There is no purchase tax in Slovakia.

Other Purchase Costs
3% Estate Agency commission
Solicitor charges vary in location and work requirement. Costs are
typically L500 - L1000
Translator at the notary costs L100 approximately
Registration of the new property owner at the land registry, this
varies in costs depending on how quickly you require registration.
For registration within 14 days a fee of 8,000 SKK (approximately
L155 Sterling) is payable. For standard registration (no guarantee
of time scale) a fee of 2,000 SKK (approximately L40 Sterling) is
payable. Please note the expense of the Notary verifying the
signatures is also payable.
Extra charges could be payable for solicitors services such as
official translation of legal documents from a different language
into Slovak and if documents must be signed and verified by a
foreign notary.
Charges to connect water, electricity and gas meters.
Good quality furnishing can be budgeted at approximately 5-8%
purchase cost.

Other Expenses
Annual property tax (depending on size and location)
Annual council tax (depending on size and location)
Property insurance (depending on size and location)

Buying Guide
Who can buy?
Citizens of countries who have a reciprocity agreement with Slovakia
can purchase a property, which includes all countries within the EU

Tenure Of Property
Almost all property in Slovakia is Freehold

Mortgage / Financial Advice
Mortgages are available from Slovakian banks for both residents and
non-residents with variable interest rates and payment terms (20
years being the maximum for non-residents). Our associates work with
leading Slovakian banks and will guide you through the entire
process. The maximum percentage on mortgage deals currently stands
at 70%.

Legal Documents
We would always advise that you use a lawyer to complete your
purchase and we can provide the names of several Slovakian/English
lawyers in Slovakia/U.K. on request, although each of our Associates
has access to lawyers.

Our Associates will prepare a contract that will detail your
property, type, etc together with the price agreed, payment method
and any extras or alterations you may require. This Contract
Agreement is binding in Slovakian Law and will be in both English
and Slovakian.

When purchasing a property off plan or at the beginning of the
building process it is normal to sign a Contract For Work and a
contract detailing the future transfer of property ownership.

If the property is due to be completed soon or if it is already
completed then it may be possible to sign the purchases agreement
immediately. Purchasers will also be asked to sign an agreement
detailing the maintenance of communal areas.

Maintenance Services
For your peace of mind, if you are a non-resident, all our
Developers and Real Estate companies offer a full maintenance
service to ensure your property is kept in A1 condition during your
absence.

Details of services and costs are available on request in relation
to a particular property.

Letting Property
Bratislava, the capital of Slovakia, is rich in history and has
managed to retain its beautiful Baroque core. Situated in the far
western corner of the Slovak Republic, it is only a short 45-minute
drive from Vienna, the capital of Austria.

Slovakia has one of the fastest growing economies in the EU, with
many industries and businesses choosing to relocate to the East of
Europe; Slovakia has been one of the main beneficiaries. The
aggressive fiscal policy, designed to encourage even more inward
investments and a 19% flat rate tax are proving Slovakia to be a
very attractive country for many International companies to relocate
to. These factors contribute to a hugely promising letting market
within Slovakia.

The letting potential in all the areas sold by The Property Bank is
very good. Many of our associate Companies of The Property Bank can
offer you a full letting service, which includes marketing,
reception services for arrivals and departures, cleaning and linen
services. Please contact us for further information.

Other Information
Residence
A Residence Visa is only required for stays of longer than three
months at a time.

Work Permits
It is possible to obtain a work permit and work in Slovakia but this
is normally arranged prior to arrival in Slovakia.

If you have been offered work in Slovakia you should make enquiries
at the Slovakian Consulate to obtain the required permit.

Working in Slovakia without this permit is forbidden.

Tax Regulations
Any earnings from property lettings in Slovakia is subject to tax in
Slovakia. For international tax issues and double taxation relief
and for information on your UK tax liabilities visit
www.inlandrevenue.gov.uk

Capital Gains Tax (CGT)
The standard rate of capital gains tax in Slovakia is 19% although
there are a number of exemptions for property such as the sale of a
residential apartment and other private real estate that has been
held for a minimum of 5 years.

VAT - 19%
VAT is applied to all newly constructed properties in Slovakia at
the standard rate of 19%, however, as in the UK, this is nearly
always included in the advertised price and where it is not it will
be clearly indicated.

Income Tax - 19% Flat Rate
Slovakia has a flat income tax rate of 19% and there is a personal
allowance (0%) of approximately L2,000. You will also be able to
reduce your tax bill by deducting property related expenses from
your income. Deductibles available include depreciation, loan
interest, real estate taxes and repairs and maintenance.